The purchase of sufficient stock in a firm to obtain significant management control?

Direct investment

Production facilities in Mexico that temporarily import raw materials, components, or parts duty-free to be manufactured, pressed, or assembled with less expensive local labor, finished or semi-finished good it the exported?

In-Bond Plants

The purchase of stocks and bonds to obtain a return on the funds invested?

Portfolio Investment

Transnational economic zones spread over large, geographically proximate areas covering three or more countries where differences in facto endowments are exploited to promote external trade and investments?

Growth Triangles

Numerical limits places on specific classes of imports?

Quotas

Amount of currency a dollar can buy?

Exchange Rate

Number of units of currency required to buy the same amounts of goods and services in the domestic market that one dollar would buy in the U.S.?

Purchasing power parity

An economic philosophy based on the belief that a nation’s wealth depends on accumulated wealth and to increase wealth, government policies should promote exports and discourage imports?

Mercantilism

States that countries export products requiring large amounts of their abundant production factors and import products requiring large amounts of scarce factors?

Heckscher-Ohlin Theory of Endowment

Economic integration where tariffs are abolished between members, but they still have them with outside world?

Free Trade Area

MERCOSUR affects this geographical area?

South America

Economic integration in which countries give up sovereignty, currency, controls at central bank?

Complete economic integration

Deliberative body of the UN, all countries have a vote, nonbinding decisions?

General Assembly

The five countries which have a permanent seat on the security council?

U.S., U.K., China, Russia, France

The largest currency exchange in the world?

London

A sever BOP deficit?

Fundamental

Meeting after WWII which established the gold standard, the IMF, the World Band, and stated stable exchange rates were preferable?

Bretton Woods

Established by the IMF as a reserve; they are based on a basket of currencies?

SDR’s (Special Drawing Rights)

The three accounts in the BOP?

Current, capital, official reserves account

Belief that one’s culture is superior to all others?

Ethnocentricity

Payments to keep the receiver from causing harm to the payer?

Extortion

Emigration of highly educated professionals to other countries?

Brain Drain

Aspect of Hinduism where entire society if divided up into four groups?

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